Crypto Lending Market Recovers: DeFi Borrowings Surge Since 2022

The crypto lending market is showing signs of recovery, especially in decentralized finance (DeFi). A Galaxy Research report indicates a significant surge in DeFi borrowings since late 2022.

While the total crypto lending market reached $36.5 billion by the end of 2024, it's still below the $64.4 billion peak in 2021. However, DeFi borrowings have impressively increased by 959%, rising from $1.8 billion to $19.1 billion.

Centralized lenders like Tether, Galaxy, and Ledn hold a large portion of outstanding loans. The report anticipates that improved risk management and greater institutional involvement will fuel further expansion in the crypto lending space.